Introduction to Marketing

Learning Objective

Students will identify the 4 P’s of Marketing and the Marketing tactics used in advertising.

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Daily Learning Target

I can use the 4 P’s of Marketing to plan an effective marketing

strategy and commercial.

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4

MarketingMarketing

2

Lubricant

8

25% Growth in USA 7

Cornerstone Entrepreneurship

5

$ Highest/Lowest Pay

4

Exciting Work With People

6

60% CEO’s in America

3

Transferable Skills

1

1/3 Jobs in USA

5

Definition of Marketing

Marketing is the process of developing, promoting,

and distributing products in order to satisfy customers’

needs and wants.

Develop

Promote

Distribute

Products

Where do we see Marketing?

Commercials

Newspapers

Magazines

Billboards

Buses

Park benches

Pop-ups

Internet Ads

Sides of Buildings

Home mailers

E-mail

Social Media

Infomercials

Radio

In movies and TV shows

In-Store ads

Celebrity branding

The 4 P’s of Marketing

Product

Place

Price

Promotion

Product – An item that satisfies a need or want

Goods, Services, & Ideas – Products are divided into physical goods, intangible services, and information.

Goods – You can see and touch

Services – Provided for you by other people

Ideas – provide information

Product – Target Market

Target Market - A group of customers that the business is aiming for.

Target market Segmentation:

• Gender• Age Range• Level of Income• Lifestyle• Ethnicity• Social Class• Religion• Culture

• Occupation• Education Level• Marital Status• Household size• Stage in family life cycle• Geographical Location• Interests• Corporations

Who is the Target for these TV Shows?

Place - Where and how the product is distributed

Also known as Distribution Differences in Quantity

Large production, small quantity needed

Differences in Assortment

Many similar products in one location

Differences in Location

From manufacturer to customer

Differences in Timing of Production and Consumption

Higher demand different times of the year

Make products available in the RIGHT place at the RIGHT time in the RIGHT quantities.

Manufacturer

Distributer

Store

Customer

Price - The amount a customer pays for the product

How do you determine value?

Production Cost – cost of making the item Also includes advertising, salaries of employees, cost of running

business

Selling Price – amount you are charging the customer

Profit – amount you are making after subtracting the production cost from the selling price.

Price

Competition: Another concept to setting price is considering your competitors prices. If your prices are much higher or much lower, that can affect your sales and also how your company is viewed. “This brand costs the most—It must be the best.”

“This costs the least—it must be a piece of crap.”

“This is way overpriced—I’m not buying it.”

“This is expensive, but it’s the only place I can get it.”

“This is a great price! I’m getting a good deal!”

“I can get this cheaper at store X, I’ll get it there.”

If you have no competition, you can usually get away with charging more. But it’s only a matter of time until someone copies your idea.

Promotion - All methods of communication

from the marketer to the customer

Goal: Get your product in the customer’s head as much as possible.

Slogans

Logos

Jingles

Slogan - A short memorable phrase to remind the consumer of a product

15 minutes could save you 15% or more on car insurance

Finger-lickin’ Good

The quilted quicker picker upper

Drivers wanted

Think outside the bun

You can do it, we can help.

Logo - A graphic mark or emblem used to aid and promote instant public recognition.

Jingles - A catchy tune that contains lyrics that promote a product.

Toys R Us

Pillow Pet

Les Olsen Company

Meow Mix

Twinkle Toes

Red Robin

McDonalds

Commercial Advertising

Bandwagon – “Everyone is doing it.” Join in for certain victory, or because it’s a mass movement and you don’t want to be left behind Kmart Ship the Pants

Beautiful People – Using famous, happy, and/or attractive people to make you feel like the product can make you like them. Old Spice Commercial

Card Stacking – Making the product look better by comparing certain facts to the competition, but not sharing all the facts. Pepsi Vs. Coke

Common Man – Also known as “ordinary people sell,” this technique uses ordinary people, clothing, language, etc, to sell the product Dog Collar Doritos Buddhist Monks

Commercial Advertising

Emotional Appeal - Arouse emotions such as fear, humor, love, or desire Cat Food Commercial

Glittering Generalities – Uses emotionally appealing words but no actual data or concrete argument to prove it. Broad statements about audience beliefs. Doritos

Name Calling – Targeting a specific competitor and using negative names to create an unfavorable opinion about them. Energizer Bunny – Vader

Repetition – Using a jingle or word this is repeated over and over again, getting stuck in your head. Can be catchy music and jingles as well as slogans or phrases. Original Free Credit Report.com

New Free Credit Report.com

Commercial Advertising

Stretch the Truth – Exaggerate a fundamental aspect of the product that is true, but only to a certain degree.

Sham Wow

Statistics - Facts and figures are often used to make a product sound better, healthier, more effective, etc. Demonstrations of the product vs. a competitor are common. Subway

Testimonial - Popular stars as spokespersons, receiving big contracts to endorse products. YOU can resemble your celebrity idol by using the product. Drew Breeze

Transfer - Associate the product with something consumers love or relate to (so they will transfer the qualities of that positive image to the product.) Chuck Norris

Commercial Advertising

Family Fun and Togetherness– Every child dreams of fun family times. Ads employing this tactic convey this ideal image as achievable if you use the product being promoted. Wii Old El Paso

Thrill and Excitement - Many products are promoted as something that will add excitement to an otherwise dull existence. Mountain Dew - Rhapsody Doritos Commercial in the Gym

Cartoons Sell - Not only are “real” people used to sell products, so are cartoon characters. Many products have brand-specific characters like Tony the Tiger or the Energizer Bunny. Frosted Flakes Xmas Fruity Pebbles

Coke Christmas

Did you get the strategies?

Types of Entrepreneurs

Entrepreneur

One who organizes, manages,

and assumes the risks of a

business or enterprise.

Brainstorm

Traits of a

Successful

Entrepreneur

Inventor

Comes up with ideas for entirely

new products and services

Thomas Edison

Alexander Graham Bell

Eli Whitney

Benjamin Franklin

Henry Ford

James Naismith

Brainstorm

Traits of a

Successful

Inventor

Thomas Edison

Innovator

Takes existing products or

services and changes some

aspect of them, such as

features, size, or pricing

Internet

Weapons

Money

From Poop to Profits

What made this farmer

an Entrepreneur?

Marketing Entrepreneurs

They do not change the product

itself, but rather the way the

product is perceived by

consumers.

Burger King creates the left

handed Whopper

Entrepreneurial Skillsand Careers

Need for Entrepreneurial Skills

“Since small businesses have created the majority of new jobs over the last few

decades, in this period of major economic restructuring it is essential that education

professionals focus on essential entrepreneurial skills to stimulate new business

creation. the entrepreneurial competencies essential to the 21st Century Workplace are provided to the present and future worker force.

It is not enough to know how to fix a computer network or build a house, one must have the appropriate entrepreneurial skills to make it a successful business“

- Hank Kopcial, NFIB Young Entrepreneur Foundation

Entrepreneurship can be risky…

• Sporadic Income

• Business will fail and lose investment

• Possibly liable for debts

• Harder to find work or start again

• Less Security (perhaps)

Taking a Calculated Risk

“A risk that has been given thoughtful consideration and for which the potential costs and potential benefits have been weighted and considered”

Owner-entrepreneurship education empowers young people to make well-informed decisions about their future, whether they choose to become entrepreneurs or not.

Financial Rewards

Profits

Facebook - Mark Zuckerberg launched Facebook around age 20

The Body Shop – Dame Anita Roddick started at age 27 with 15 products

Spanx – Sara Blakely started at age 28

Wal-Mart – Sam Walton started at age 26

Capital Growth

Non-financial Rewards

• Independence

• A sense of satisfaction

• Building something

• Being in control

• Employing more people

• Making a contribution to community

The Burrito Project – Salt Lake City

Find a “need” (opportunity) and figure out how to meet it

A “need” for a sober living environment

A “need” for a shirt extender

A “need” for shoe and leather repair

A “need” for car inspections

A “need” for airport transportation A “need” for child care.

Find a “want” (opportunity) and figure out how to meet it

A “want” to make own jewelry and wedding rings

A “want” for chic, fun fitness apparel.

A “want” to snow-kite

A “need” for a hostess gift and a “want” for chocolate

Most entrepreneurs are good at what they do, BUT they don’t know how to plan for

and operate a small business

• Attorneys• Doctors• Dentists• Architects• Accountants• Interpreters & Translators • Financial Analysts • Optometrists• Home Health Care Providers• Web Designers • Insurance Agents• Non-profit directors*• Funeral Directors• Tour Guides

• Caterer• Restaurant Owner • Marriage, Child and Family

Counselors • Travel and Transportation Agents• Veterinarians• Plumbers • Hair Stylist

Why should students care about entrepreneur education?

Entrepreneurship allows you to dream your own destiny and craft a job that you can excel at.

• If you're going to spend time doing something, why not spend time doing something you love? Pursue your passion.

• Resume Builder. What looks better on a resume --someone who started a lawn-mowing business and made sales as a teenage or someone who worked as a cashier in a local supermarket?

• Students already own five powerful assets: time, talent, attitude, energy and unique knowledge of one’s local market.

Barefoot Tubing

Why should parents care about entrepreneurship education?

• “I’ve seen apathetic kids whose families have been on welfare for generations get excited about school and their futures. They discover that they can participate in our economy and earn money. They quickly realize that to do so, they must to learn to read, write and do math.”

“I’ve also seen how owning even the simplest small business fills a teen with pride.”

* Why Every School in America Should Teach Entrepreneurship, Steve Mariotti – Network for Teaching Entrepreneurship (NFTE)

Skills for a lifetime…

Remember - entrepreneurs who have built and sold one business for a substantial amount go on to build other successful businesses. They never lose the entrepreneurial buzz.

Happy Monkey Hummus